Positive developments for the Kraken could also be supporting Bitcoin’s long-term stability, though short-term volatility is expected due to macroeconomic and regulatory factors.
The FBI has officially closed its investigation into Jesse Powell, co-founder of Kraken, over alleged hacking at the Verge Center for the Arts — a nonprofit he once helped lead. Federal agents seized the laptops and phones from Powell’s Los Angeles home during the trial in 2023.
However, why crypto market plunges? As Crypto News Flash (CNF) shared, Kraken has launched Krak, a global app moving 300+ assets across 110 countries with tiny fees and Earn yields. This announcement of the DOJ’s decision coincides with significant volatility in the cryptocurrency market, though no significant direct causal link has been established.
As shared in a recent tweet by Katherine Ross, the Justice Department dropped its probe into Kraken co-founder Jesse Powell.
Looking closely at posts on X, there is a mix of optimism about the resolution of Powell’s case and broader market concerns, with some users noting liquidations impacting major cryptocurrencies like Ethereum (ETH) and XRP.
Nevertheless, the crypto market has experienced a downturn, with reports of $288 million in liquidations within a four-hour period. This is driven by macroeconomic factors, regulatory uncertainty, and profit-taking after recent highs — as we analyze here in more detail below.
Observing the current market, the DOJ’s decision to drop the case against Jesse Powell has not been directly linked to the recent plunge in Bitcoin’s price, which has fallen from a peak of approximately $120,000 to around $118,307 as of today.
On a positive side, however, the resolution of Powell’s case could indirectly support Bitcoin’s long-term stability by reinforcing confidence in Kraken, a major exchange that facilitates significant BTC trading volume.
For example, CNF previously highlighted that Kraken facilitates staking Bitcoin without wrapping or bridging. Positive developments for key industry players like Kraken may mitigate some bearish sentiment, though short-term volatility is likely to persist due to external factors like ETF outflows and regulatory debates.
At the time of writing, however, market reactions to the DOJ’s decision to drop the case against Kraken co-founder Jesse Powell have been mixed, with crypto policy shifts potentially influencing BTC’s trajectory in the coming months.
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